The teaching case (TC) describes existing food bank operations and the supply chain of the Fondazione Banco Alimentare ETS (FBA), the food bank network in Italy. The TC describes the existing food bank operations, digital transformation and circular economy initiatives of FBA. The educational aspect of the TC addresses how systems thinking and business model innovation can help address existing food bank supply chain (FBSC) challenges and to achieve sustainability and circular economy goals. Literature findings suggest the great potential of blockchain technologies to address FBSC challenges, such as sporadic and uncertain supply and demand, supply and demand gap, food loss and food waste (FLW), the lack of transparency, and capacity limitations. For that purpose, the TC explores how to estimate the impact of new technologies (e.g., blockchain) and digital transformation on the existing food donation process and donation management given the great potential of such innovations. The impact of digital transformation in the FBSC is investigated by means of system dynamics and data-layered causal loop diagrams based on the example of FBA and its operations. In addition, alternative solutions, value creation and business model innovation are integrated into the TC to assess potentials of innovations and alternative solutions to increase sustainability and circular economy of the FBSC and food bank operations of FBA to reduce FLW and food insecurity in the local community. Despite the extension of the food bank operations, constant development of partnerships with suppliers and non-profit organizations, and extensive investment in technological solutions, only 60% of active donors of FBA are active in circular economy initiatives, and only 25% of non-donors are involved in recycling and recovery practices in 2023, thus suggesting potential for improvement.